Solution-What amount deducted for depreciation on the

What amount deducted for depreciation on the company book

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Reference no: EM133188113

Question - Forever Incorporated's partial income statement after its first year of operation is as follows:

Income before income taxes		P3,750,000
Income tax expense
Current	P1,035,000
Deferred	90,000	1,125,000
Net Income		P2,625,000

Forever uses straight-line method of depreciation for financial reporting purposes and accelerated depreciation method for tax purposes. The amount charged to depreciation expenses on its tax return this year was P1,800,000. No other differences existed between book income and taxable income except for the amount of depreciation.

Assuming a 30% tax rate, what amount was deducted for depreciation on the company's book for the current year?

Reference no: EM133188113

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What amount deducted for depreciation on the company book

Reference no: EM133188113

Reference no: EM133188113

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